The biggest operator of golf and country clubs in the United States, ClubCorp Holdings Inc, announced it had raised USD252 million during its initial public offer. This was achieved by pricing its shares below the marketed range.
The company together with an existing shareholder had sold 18 million shares at USD14 per share. According to data obtained by Bloomberg, the offer was between USD14 and USD18 per share. The stock would start trading by tomorrow and is listed in the New York Stock Exchange as MYCC.
The affiliates of KSL Capital Partners LLC, the private equity firm that supports travel and leisure businesses, acquired ClubCorp back in December of 2006. It plans to keep the majority share after the IPO, which plans to sell 7.1 million shares while ClubCorp itself plans to sell 10.9 million shares according to its prospectus. The proceeds of the IPO would thenbe used to pay outstanding debt and reduce its overall debt load.
If the shares are sold at the midpoint of the price range, ClubCorp would be valued at USD1.65 billion, which includes debt. This is the figure reached through data compiled by Bloomberg according to the original IPO terms submitted.
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